On Wednesday January 11, 2023, a revised version of the e-levy will be implemented in an effort to increase revenue collection and promote electronic transactions.
The Finance Minister, Ken Ofori-Atta, announced a reduction of the E-levy rate from 1.5% to 1% in the 2023 Budget presentation.
A statement from the Ghana Chamber of Telecommunications assured the general public that its members are working with the GRA and other key institutions, to ensure a seamless implementation of the revised E-Levy tomorrow.
The service providers are Airtel Mobile Commerce (Ghana) Limited, GCB G-Money, Mobile Money Limited, Vodafone Mobile Financial Services Limited and Zeepay Ghana Limited.
“As captured in the Electronic Transfer Levy (Amendment) Act, 2022, Act 1089 which has been passed by parliament and assented to by the President, the levy on electronic transfers has been reduced from 1.5% to 1%, while the GHS 100 threshold remains unchanged.”
GCTC
The e-levy is a tax imposed on electronic transactions such as online purchases, bank transfers, and mobile money transactions. The tax is intended to encourage a shift away from cash transactions, which are often associated with tax evasion and money laundering. The move is also expected to improve the overall efficiency and transparency of the economy.
The revised e-levy will have a few key changes compared to the current version. One of the main changes is the expansion of the types of transactions that are subject to the tax. Under the new regulations, the e-levy will apply to a wider range of electronic transactions including online purchases, peer-to-peer transfers, and even transactions made through virtual currencies such as Bitcoin.
This is a major step forward as it will help keep track of all electronic transactions, regardless of the payment method used. The threshold for tax-free transactions has been lowered from the current ¢1,000 to ¢500. This will ensure that even small transactions are included in the tax system and will make it harder for individuals and businesses to evade taxes.
Projects By Government
The government has stated that the revenue generated from the e-levy will be used to fund various development projects such as infrastructure and social welfare programs.
These projects are expected to have a positive impact on the economy and will help improve the standard of living for citizens. This increase in revenue will also help reduce the government’s reliance on borrowing from external sources and will help improve the country’s overall financial stability.
The implementation of the revised e-levy has received mixed reactions. Some argue that the tax will lead to an increase in the cost of living and discourage electronic transactions, particularly for small businesses and low-income earners who rely on online platforms for their livelihoods.
These concerns are understandable, as any increase in taxes is likely to increase the cost of goods and services for consumers. However, it is important to consider the long-term benefits of the e-levy. A cashless society is expected to lead to a more efficient and transparent economy, which will have a positive impact on businesses and consumers in the long run.
The government has recognized these concerns and has stated that measures will be taken to mitigate the impact of the e-levy on small businesses and low-income earners. For instance, businesses with annual revenues of less than ¢100,000 will be exempted from the tax. This will help ensure that small businesses are not unduly burdened by the new tax and will help them continue to operate and grow.
The government has announced plans to launch an electronic payment system for small and micro-businesses to make it easier for them to transition to electronic transactions. This will provide small businesses with an accessible and affordable means of accepting electronic payments and will help them compete with larger businesses.
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